How to Detect Real Solar Energy Companies From Scams
As solar energy becomes an increasingly popular avenue to reduce energy costs and promote sustainability, many homeowners are exploring the benefits of installing solar panels. However, along with the rise in solar energy curiosity are solar scams. Part of our jobs as Financial Champions is helping our members make informed decisions to protect their financial well-being. Today, we briefly discuss solar scams, why they’re becoming more widespread, how to distinguish legitimate companies from scammers, and most importantly, how to avoid falling victim to these schemes.
What Is a Solar Scam?
A solar scam is when fraudulent companies or individuals target homeowners by offering deceptive or misleading deals related to solar panel installation. These scams come in various forms. Below are a few examples to be aware of.
False Government Incentives: Scammers may claim you qualify for nonexistent tax breaks, rebates, or government programs that offer “free” solar panels.
Misleading Promises: Some scammers exaggerate the savings solar energy can provide, pressuring you into signing contracts without fully explaining long-term costs or obligations.
Low-Quality Installations: Fraudulent companies may install substandard equipment or cut corners during installation, leading to inefficient systems or costly repairs later.
Phishing or Identity Theft: Some scammers use solar offers as a pretext to collect your personal or financial information, potentially leading to identity theft.
These scams can leave consumers with poorly functioning solar systems, hidden fees, or lost money. Even more troubling, victims often struggle to resolve issues with these fraudulent companies after they have vanished.
Solar Scams on the Rise
Several factors contribute to the increasing prevalence of solar scams
Growth in Solar Popularity: As solar energy gains popularity among homeowners seeking to lower energy costs and support a greener environment, the demand for solar panel installations has surged. Unfortunately, scammers are capitalizing on this increased interest.
Government Incentives: Federal, state, and local governments offer legitimate incentives, such as tax credits and rebates, to encourage homeowners to switch to solar power. Fraudsters exploit this by promoting fake or exaggerated programs to bait unsuspecting customers.
Aggressive Marketing Tactics: Many scammers use high-pressure tactics, such as unsolicited phone calls, door-to-door sales, or misleading online advertisements. These tactics create a sense of urgency, pushing consumers to make hasty decisions without proper research.
How to Tell the Difference Between a Legitimate Solar Company and a Scam
Recognizing the signs of a legitimate outfit versus a scam can help you protect yourself from fraudulent offers. Here are some key differences:
Licensing and Certification: Reputable solar companies are licensed and certified by recognized organizations like the North American Board of Certified Energy Practitioners (NABCEP). Always ask for proof of certification before moving forward or check the NABCEP directory.
Verified Reviews: Check the company’s reviews on reliable platforms such as the Better Business Bureau (BBB). A reputable company will have a history of positive reviews and few complaints. Be wary of companies with little to no online presence or consistent negative feedback.
Genuine Government Incentives: Valid companies will help you apply for real tax credits and rebates. Scammers often promise exaggerated or nonexistent savings through fake government programs. Research legitimate rebates and tax credits through the Department of Energy or Energy Star.
Ask for Detailed Quotes: Obtain multiple quotes from different companies to compare costs and services. A detailed quote should outline all the costs involved, including installation, equipment, and any additional fees. If a company’s quote seems too good to be true, it probably is.
Avoid High-Pressure Tactics: Be cautious of salespeople who push you to make an immediate choice or claim that an offer is only available for a limited time. Trustworthy companies will allow you time to research and make informed decisions.
Check for Red Flags: Be wary of companies that ask for upfront payments, offer deals that seem too good to be true, or provide vague or incomplete contracts. Always read contracts thoroughly and ask questions if anything is unclear.
What to Do If You Suspect a Solar Scam or Become a Victim
If you suspect you’ve encountered a solar scam, or if you’ve fallen victim to one, here are steps you can take to protect yourself:
Report the Scam: File a complaint with the Federal Trade Commission (FTC) or your state’s consumer protection office. In Florida, you can also report scams to the Fraud Free Florida and your local attorney general’s Fraud Hotline (866) 966-7226. Also, remember to file a police report with your local law enforcement office.
Notify Your Financial Institutions: If you’ve provided sensitive information, contact your credit union immediately to prevent further financial damage. Champions First Credit Union can assist you in securing your accounts if necessary.
Seek Legal Advice: If you’ve signed a fraudulent contract, consult with an attorney to explore your options for recourse. You may be able to void the contract and recover lost funds.
Monitor Your Credit: If you suspect your information has been compromised, monitor your credit report for any suspicious activity. You can sign up for free credit monitoring through the Credit Score tool in your Champions First Credit Union account portal.
Even though solar energy can be a smart choice, stay vigilant against scams. By recognizing legitimate companies, avoiding high-pressure sales tactics, and protecting your personal information, you can safeguard your financial well-being. If you have encountered a scam, act quickly, report the fraud, secure your accounts, and seek legal advice to minimize potential damage. At Champions First Credit Union, we’re here to support you every step of the way in making safe, informed decisions.